Outgoing Gambian President Yahya Jammeh has declared a 90-day state of emergency a day before his official mandate ends, state TV reports.
At least three government ministers, including the Foreign Minister, have resigned in recent days. Thousands of Gambians have also fled to neighbouring Senegal amid fears of violence.
Regional leaders have been unsuccessfully trying to persuade him to hand over power to Adama Barrow, who won December's elections.
The move comes after Nigeria deployed a warship to further pressure Mr Jammeh.
Regional bloc Ecowas (Economic Community of West African States) has prepared a force but maintains that military intervention would be a last resort.
The exact terms of the state of emergency remain unknown, as no details were provided with the announcement.
Mr Barrow is meant to be inaugurated as the new president on Thursday (local time).
Mr Jammeh initially accepted the election results but then decided he wanted them annulled after the electoral commission admitted some errors, although it insists this did not affect the final outcome.
The Supreme Court is unable to hear the challenge until May because of a shortage of judges, and Mr Jammeh has said he will not step down until then.
Show of strength
BBC Africa security correspondent Tomi Oladipo said the Nigerian warship was being deployed to put on a show of strength rather than to launch an attack.
A military source said that the vessel - the NNS Unity - is currently sailing off the coast of Ghana.
Mr Barrow won 43.3 percent of the vote compared with Mr Jammeh's 39.6 percent. A third candidate, Mama Kandeh, got 17.1 percent.
Yahya Jammeh seized power in the tiny West African country in 1994 and has been accused of human rights abuses, although he has held regular elections.
-BBC